BSP-backed forum targets sukuk growth

The Islamic Finance Coordination Forum (IFCF), led by the Bangko Sentral ng Pilipinas (BSP), pushed for the full development of a Sukuk market for Islamic debt issues.

IFCF recently hosted the “Stakeholders’ Forum on Domestic Sukuk Issuance.”

The forum aimed to promote Sukuk or Islamic bonds and help Muslim-owned companies have greater access to funding.

A key participant was the International Islamic Liquidity Management Corporation (IILM), an organization led by central banks and financial institutions that promotes Islamic finance. IILM chief executive officer Mohamad Safri Sahul Hamid joined one of the panel discussions.

Key topics included the legal and regulatory frameworks for Sukuk, IILM’s experience with short-term Sukuk instruments, draft guidelines on Sukuk operations in the Philippines by the Securities and Exchange Commission, and the Insurance Commission’s guidelines for Takaful Window Operations.

Moslem way

The forum also covered discussions on the Sukuk memorandum circular of the Bureau of Internal Revenue, understanding Shari’ah compliance and the market operations of Sukuk, and updates on Islamic Finance accounting initiatives.

“The BSP remains firmly committed to advancing initiatives that promote Islamic banking and finance as part of its broader financial inclusion agenda,” BSP Monetary Board Member (MBM) Rosalia V. de Leon said.

She also noted the growing interest in sukuk after the government’s $1 billion maiden issuance of sukuk bonds in December 2023.

Monetary Board Member Romeo L. Bernardo called for stronger partnerships and openness to innovation. “A key takeaway from the forum is the need for stronger collaboration, openness to prudential innovation, and sustained commitment to building a dynamic and inclusive Islamic finance ecosystem,” MBM Bernardo stressed.